Source : delhihighcourt.nic.in
Background
‘Commercial
working statement’ is the information submitted about the working or
non-working of granted Patents by a Patentee or a licensee to the Indian Patent
Office by making a request on Form 27. This is required to be submitted with
the Indian Patent Office within 3 months from the end of every year that is
before March 31 of every year or when the Controller issues a notice regarding
submission of such information. Recently, a writ petition was filed by Prof.
Shamnad Basheer (hereinafter referred to as the ‘Petitioner’) wherein he pointed out that many Patentees and Licensees
have not submitted the commercial working statement and no action has been
taken against them as per Section 122 of the Indian Patents Act, 1970
(hereinafter referred to as the ‘Act’).
Petitioner’s
Submission
The
Petitioner highlighted many instances where there was a failure to comply with
the submission of a working statement by the Patentees or licensees. These are:
Ø As
reported in the Annual Report for the year 2012-2013 submitted by the Office of
the Controller General of Patents, Designs, Trademarks and Geographical
Indications, ‘there were totally 43920
patent issued during that period, but the commercial working statement on Form
27 was submitted only in 27946 cases and
moreover, only in 6201 cases the statement was recorded as working’. It
sought information from the Union of India (hereinafter referred to as the ‘Respondents’)
regarding the actions that have been taken against the Patentees/Licensees for
not submitted Form 27.
Ø It
further referred to the case of M/s NATCO
Pharma to whom a Compulsory License was granted for the Patent No. 215758
and the order, which granted Compulsory License, imposed an obligation on M/s
NATCO Pharma to report the accounts of sales to the Controller on a quarterly
basis, on or before the 15th of each succeeding month. It sought information as
to whether M/s NATCO Pharma has complied with the order and if not what action
has been taken against them.
Ø The
Court’s attention was further drawn to another statutory noncompliance where
the the Petitioner pointed out that Section
146(2) read with Rule 131 also makes it mandatory for a licensee to submit
the working statement to which the Controller of Patents and Designs, CPIO
responded that “Form-27 are filed by Patentee only”.
Ø The
Petitioner also pointed out to an instance where Form 27 was submitted by M/s
Telefonaktiebolaget LM Ericsson (Pub.) in respect of patent no.203034 where the
Patentee mentioned that details of licenses and sub-licenses would be only
disclosed on the direction of the Patent Office.
Intervener’s Submission
Ms.
Pritha Srikumar, Advocate for the intervener, has submitted that the Petitioner
has pointed that Form 27 was vague, a relook into the same by the Respondents
is necessary, and hence, non-compliance of submitting Form 27 cannot be faulted
with.
Court’s Observation
Ø The
Court held that the response of “Form-27 are filed by Patentee only“ by
Controller of Patents and Designs, CPIO is contrary to statutory requirement as
per Section 146 of the Act.
Ø With
regard to the Form 27, submitted by M/s Telefonaktiebolaget LM Ericsson (Pub.),
the Court stated that the Patentees/Licensee
are required to furnish details of the licenses and sub-licenses. Further,
it held that these information cannot be
termed “confidential” and therefore, the Patent Office has to take action
against Patentees/Licensees who do not furnish the required information for
submitting Form 27.
Ø The
Court held the submission of Ms. Pritha Srikumar to be erroneous and stated
that there can be no exemption from statutory provision and the
Patentee/licensee who submits the same with the Patent Office should clarify
any problem relating to Form 27. About having a relook into submission of Form
27, the Court observed that the Respondents have submitted in their counter
affidavit that public comments were invited for the amendment to Form 27.
Ø The
Court further stated that the writ petition by the Petitioner has remained
pending with the Court since 2015. Also, they do not have any information as to
whether there is any change in the status with regard to the submission of
working statement under Section 146 of the Patents Act, 1970 and whether any
action is taken by the Controller General of Patents and Designs under Section
122 of the Act against Patentees/Licensees who are not complying with the
submission of commercial working statement.
Further, Mr. Amit Mahajan, the Learned Central Government
Standing Counsel (hereinafter referred to as the ‘CGSC’), prayed for an
adjournment with regard to information about the status of any amendment to the
rules and action taken under Section 122 of the Indian Patents Act for
non-compliance in submission of working statement. Therefore, the Court granted
time to CGSC and the matter will be next heard on January 18.
Conclusion
Submission of working statement by making a request on Form 27 is
mandatory and is required to be submitted by Patentees/Licensees without hiding
any information as confidential. Any failure to comply with the submission of
Form 27 would lead to imprisonment or a fine or both as per Section 122 of the
Indian Patents Act.